Financial Stability Report December 2025: 18 Revision Flashcards

Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
How do Stablecoins differ from unbacked crypto assets?
Direct Answer
Stablecoins are designed to maintain a stable value
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With reference to India’s capital and financial account,
select the incorrect option
Direct Answer
Overall, financial account turned negative in H1:2025-26.
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Which probable development is most likely to materially worsen equity market stability in the near term according to the FSR December 2025?
Direct Answer
Correction in AI-driven asset prices.
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Which structural shift has reduced the impact of US equity corrections on Indian markets?
Direct Answer
Declining beta and reduced co-movement with US markets.
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What has primarily underpinned the resilience of Indian equities despite FPI outflows?
Direct Answer
Robust and rising domestic institutional investor participation.
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How the funding composition of banks evolved when compared to the previous year (Sep 2025 vis-à-vis Sep 2024).
Direct Answer
none of the above
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Which segment of NBFCs has recorded a sharp increase in credit cost?
Direct Answer
NBFC-MFIs
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Despite a downward trend in the GNPA ratio, stress within the NBFC sector remains evident, as reflected by:
Direct Answer
Rising fresh accretions to NPAs and write-offs
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With reference to the financial position of September 2025, stress tests on UCBs were conducted on:
Direct Answer
205 UCBs with assets > INR 500 crore; covering about 72% of sector’s assets
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In the joint solvency-liquidity contagion analysis (Sep 2025), failure of the bank with the maximum capacity to cause contagion losses would cause:
Direct Answer
Solvency loss 2.3% of total Tier 1 capital of SCBs; liquidity loss 0.4% of HQLA of the banking system
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In the macro stress test’s adverse scenarios, which scenario assumes that the central bank has limited policy space to ease the policy rate to boost growth?
Direct Answer
Adverse scenario 2
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Under the severe credit risk shock (2 SD), the depletion in system-level CRAR for SCBs stood at around:
Direct Answer
380 bps
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In September 2025, the MTM impact of interest rate shocks on derivatives portfolios ________, compared to March 2025:
Direct Answer
Increased in magnitude
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The Financial Stability Report (December 2025) notes that during the period under review, the insurance sector exhibited:
Direct Answer
Stable solvency positions alongside steady profitability
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What proportion of borrowings of NBFC-ML is secured?
Direct Answer
Approx 45%
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What indicators of NBSI improved in September 2025 vis-à-vis March 2025?
Direct Answer
Asset Quality and Liquidity
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COP 30, the 2025 United Nations Climate Change Conference took place in ____ in November 2025.
Direct Answer
Brazil
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Complaints related to ________ formed the highest number of complaints received during the Q2 2025-26 by the SEBI with respect to the Indian Securities Markets.
Direct Answer
Stockbroker
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